Business Law Online Test Questions Part 3

11. One man holds practically the ____________ of the share capital of the one person company.

a. Partial
b. Quarter
c. Whole
d. Half

Answer: a. Partial

12. If a sub-agent wilfully commits a wrong & fraud, he is liable -

a. The sub-agent & the agent both are liable to the principal
b. Directly to the principal
c. Directly to the agent
d. All of the above

Answer: c. Directly to the agent

13. Match the Following

1] A contract entered with Pardanashini] Presumed to have been entered by undue influence woman who observes complete seclusion of the custom
2] Contract caused by a mistake as to any law in force in Indiaii] Contract not voidable
3] Criminal offenceiii] Fraud
4] No relationship between promisor and promiseeiv] Coercion
v] Performance at proper time
vi] Dependent promises
a. 1-i, 2-ii, 3-iii, 4-iv
b. 1-ii, 2-vi, 3-iv, 4-iii
c. 1-v, 2-vi , 3-iv, 4-iii
d. 1-iii, 2-vi, 3-iv, 4-ii

Answer: a. 1-i, 2-ii, 3-iii, 4-iv

14. Under which section is "Contract of guarantee" defined?

a. Section 126
b. Section 125
c. Section 124
d. Section 123

Answer: a. Section 126

15. A partner is liable to be punished if he furnishes any particular, which he

i] Knows to be false
ii] Known to be incomplete
iii] Believes to be correct
iv] Does not believe to be true

a. Only i and ii  
b. Only i and iv
c. Only i, ii and iii
d. All the above

Answer: c. Only i, ii and iii